The Bank of Korea(BOK) on Wednesday forecast that the nation’s inflation will fall at a slower pace through the end of next year to stand near two percent.

In a report reviewing its progress toward the goal of stabilizing consumer prices, the central bank projected that consumer prices will post growth of three percent in the first half of 2024, two-point-three percent in the second half and two-point-one percent in the first half of 2025.

The bank assessed that a drop in inflation could further slow if global oil prices resurge due to geopolitical uncertainty, or if international food prices go up due to inclement weather.

Meanwhile, BOK Governor Rhee Chang-yong said in a statement that the likelihood of a key interest rate cut by the U.S. Federal Reserve some time next year has increased.

He said attributed stabilization in the global financial market to expectations that rate hikes by the Fed have ended, adding that the government will be able to mull monetary policies with a focus on domestic factors.